By Bhaval Patel
Want to know the cost of developing buy now pay later (BNPL) apps like AfterPay and Affirm?
Well, the cost of developing BNPL apps starts from $25000 with just basic features. The cost of development depends on the features you include, the platform you choose, and the app development company you hire.
So, if you want to develop a BNPL app for your business, this blog will provide you with the complete bifurcation to develop BNPL like AfterPay and Affirm.
In fact, according to a report by Allied Market Research, the global buy now pay later market size was valued at $90.69 billion in 2020 and is projected to reach $3.98 trillion by 2030, growing at a CAGR of 45.7% from 2021 to 2030.
Having more than a decade of experience in app development & being one of the best apps developer company in the USA, we understand the cost structure to develop an app like AfterPay. In this guide, we’ll answer some of the most common questions entrepreneurs have about the cost to develop buy now pay later app.
From this blog, you will learn:
- Quick cost to build a simple, medium, and complex AfterPay and Affirm clone
- Factors that impact the cost of app development
- 5 ways to reduce the cost of app development
- How Space-O technologies help to build successful BNPL apps
So, let’s get started
Table of Contents
The Cost Breakdown of Creating Buy Now Pay Later Apps Like AfterPay and Affirm
| BNPL App Types | Must-have Features in BNPL Payment Apps | Cost of BNPL App Development | Timeline of BNPL App Development |
|---|---|---|---|
| Simple App (Basic Features) |
| $25,000 – $35,000 | 2-3 months |
| Medium App (Slightly advanced features) |
| $35,000 – $45,000 | 4-7 months |
| Complex App (Highly advanced features) |
| Starts from $50,000 | 8-12 months |
The features and complexity of a BNPL app vary depending on the specific needs and goals of the business, as well as the market demands and competition.
You might want to know how the development of simple, medium, and complex buy now pay later apps is calculated. So here, we have provided a simple formula to calculate the cost of buy now pay later app development. This simple formula is also referred to as an app development cost calculator.
So, from this formula you calculate the actual cost of the buy now pay later app.
However, there are many factors that affect the buy now pay later app development cost. Let’s understand the factors impacting the cost.
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Understanding 5 Key Factors that Impact the Cost of Buy Now Pay Later Application
Factors that impact the cost of BNPL app development include
- BNPL app development platform
- UI/UX design
- Features you want to integrate in your native BNPL app
- Location of the app development
- Hiring approach for app development
Considering these factors is crucial for estimating the development cost accurately. Let’s get an in-depth understanding of each factor in detail.
App Development Platform (iOS/Android/Cross-platform) for Developing Buy Now Pay Later App
When choosing a platform for developing a BNPL app, businesses should consider their target audience. Developing for both iOS and Android platforms is time-consuming and costly, while cross-platform development may be more cost-effective but result in a less polished design. Let’s understand how much it costs to develop a BNPL app on iOS, Android, and cross-platform apps.
For the below table, we have considered a minimum rate of $15 per hour and a maximum of $25 per hour.
BNPL App Development Platform (Basic Features) BNPL App Development Time BNPL App Development Cost iOS BNPL app development 900-1300 hours $13,500 to $32,500 per platform Android BNPL app development 800-1200 hours $12,000 to $30,000 per platform Cross-platform BNPL app development 1000-1350 hours $15,000 to $33,750 both the platform Apart from this, here are a few more details to consider when deciding which platform to develop your BNPL app.
iOS BNPL App Development: Developing an app for iOS can be more expensive than developing for Android, as it requires the use of Xcode and Swift programming language. However, iOS users tend to spend more money on in-app purchases and have higher brand loyalty.If your target audience consists of high-income consumers who prefer Apple products, iOS may be the better platform to provide BNPL online payment services.
Android BNPL App Development: Developing an app for Android can be less expensive than developing for iOS, as it uses Java programming language and is developed using Android Studio.
Android has a larger market share than iOS, so it may be a better platform if your goal is to reach a broader audience. However, Android has more fragmentation and device compatibility issues, which can make development more challenging.
Cross-Platform BNPL App Development: Cross-platform development can be a cost-effective option, as developers use cross-platform frameworks and a single codebase to develop the app for both iOS and Android. This reduced development time and cost, but may result in a less polished user interface and fewer platform-specific features.
Cross-platform development is a good option for small to medium-sized businesses that want to reach both iOS and Android app users without the added cost of developing separate apps.
So, the choice of platform depends on your business goals, target audience, budget, and available resources. It’s essential to consider all these factors when deciding which platform to develop your buy now pay later app on.
Must-have Features for Your Custom Buy Now Pay Later App Development
When developing a custom buy now pay later app like AfterPay and Affirm, there are several key features to consider integrating to ensure its success.
By integrating the below-mentioned features, a custom buy now pay later app provides a seamless and secure payment experience for customers while also offering valuable insights into your business. So, if you want to integrate the features like Affirm and AfterPay, here is the time taken for buy now pay later app development.
Note: The per-hour rate has been considered $15 for developing this app.
Features of AfterPay and Affirm BNPL App Description Development Timeline Personalized credit limits and payment schedules Allow customers to set their own payment schedules and credit bureaus based on their financial situation. 100-120 hours Automated payment scheduling and reminders Automatic payment scheduling and reminders to help customers avoid missed payments, all the upcoming payments, high-interest rates, and late fees. 60-90 hours Integration with popular online retailers Integration with popular e-commerce platforms to make it easier for customers to find and purchase products and get flexible financing options. 140 – 190 hours Robust fraud detection and prevention measures Advanced security features such as two-factor authentication, biometric authentication, and anti-fraud algorithms to prevent fraud and protect customer data. 80 – 100 hours Analytics and reporting capabilities Insights and data tracking tools provide businesses with valuable information about customer behavior, payment trends, and financial performance. 70 – 90 hours In-store payment method Integration with in-store payment options, such as QR codes or NFC payments, to allow customers to make purchases in physical retail stores. 130 – 170 hours Loyalty program Incentives for customers to use the buy now pay later app repeatedly, such as cashback or discounts for repeat purchases. 80 – 100 hours Customer support Comprehensive customer support options, such as email, phone, and chat, to help customers with any questions or issues they may have. 70 – 90 hours Multiple payment options Support multiple payment methods, including credit cards, debit cards, and bank transfers. 120 – 200 hours Personalized product recommendations Advanced algorithms that analyze customer data and purchase history to provide personalized product recommendations. 50 – 60 hours Early payment discounts Incentives for customers to pay off their balance early, such as discounts on interest or a monthly fee. 50 – 60 hours Credit score tracking Allows customers to track their credit score and monitor their credit history. 50 – 80 hours Multiple language support Support for multiple languages to cater to a wider audience. 40 – 50 hours Apart from this, if you are looking to build a BNPL app like AfterPay or Affirm, even consider the cost of integrating P2P payment options into your app. Peer-to-peer payment features greatly enhance the user experience and convenience of your BNPL app, but they also add to the overall cost of development. If you want to know about P2P development, check the cost to build P2P payment apps.
These are just some of the many features that you might consider integrating into an AfterPay and Affirm-like buy now pay later app.
You should prioritize the features that align with their business objectives, target audience, and budget. Even ensure that the features you choose are user-friendly, secure, and comply with industry regulations.
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Intuitive UI/UX Design Needed for Your Buy Now Pay Later App
The cost of UI/UX design impacts the overall cost of developing BNPL solutions. A well-designed UI/UX significantly enhances the user experience and increases user engagement, which can result in more customer conversions and ultimately, increased revenue. On the other hand, a poorly designed UI/UX leads to a frustrating user experience, which can result in lower customer satisfaction and reduced revenue.
The cost of UI/UX design can vary based on wireframing, prototype, and final UI/UX design. Experienced business analyst wireframes your product and UI/UX designers turn the wireframe into your BNPL solutions. It approximately takes around 4-5 weeks to get the UI/UX design ready for your app.
Check the following table to know the cost to design a buy now pay later app.
Profile Designing Stage Timeline Business Analyst Planning & Analysis 1-2 weeks Wireframing & Prototyping 3 weeks Low-fidelity Wireframe 1-2 weeks High-fidelity Wireframe 2-3 weeks UI/UX Designers App Designing 2-3 weeks Prototype 4-5 weeks It’s important for you to work with experienced UI/UX designers who creates a visually appealing and intuitive user interface, and who ensures that the app complies with relevant regulations and industry standards. Investing in quality UI/UX design helps businesses stand out in a competitive market and provide customers with a positive and seamless user experience.
he Cost Impacting the Location of Buy Now Pay Later App Development
How expensive it is to make an app depends on the location of the team you hire. The cost of hiring a team for a later app development team varies greatly depending on their location, as different regions have different labor rates and cost of living expenses.
For example, hiring a development team in the USA or Europe may be more expensive than hiring a team in Asia, where labor rates tend to be lower. However, it’s important to consider factors beyond just cost, such as language barriers, time zone differences, and cultural differences, which impacts communication and collaboration.
Apart from this, some countries or regions may have different regulations and legal requirements that impact the development process, which affects the overall cost of the project.
Based on the survey by GoodFirms, here’s a table indicating app developer’s hourly rates in different countries:
Region iOS Avg hrs Android Avg hrs Cross-platform Avg hrs Canada 90-120 hours 80-140 hours 90-120 hours The USA 60-120 hours 60-120 hours 60-130 hours Latin America 28-90 hours 28-90 hours 40-160 hours The UK 60-75 hours 60-75 hours 55-75 hours Europe 35-55 hours 35-55 hours 30-50 hours Ukraine 40-78 hours 38-60 hours 40-78 hours South Africa 45-80 hours 40-80 hours 40-80 hours India 22-90 hours 15-25 hours 20-30 hours Southeast Asia 23-55 hours 30-45 hours 30-45 hours Asia 23-55 hours 20-30 hours 25-35 hours Australia 25-35 hours 100-120 hours 90-120 hours It’s important for you to carefully evaluate all the options and choose a development team that is experienced, reliable, and provides quality work at a reasonable price. However, the development and design methods differ from app to app. But, a well-chosen development team ensures that the project stays on track and within budget, and ultimately leads to a successful and profitable BNPL app.
Choosing the Right Partner for Your BNPL App Development (App Development Company vs. Freelancers)
Hiring a development company is expensive, as they tend to have larger teams and a more structured development process. However, they also tend to offer more comprehensive services, including project management, quality assurance, and ongoing maintenance and support.
The minimum requirement of the app development team includes
- 1-2 project managers
- 1-2 business analysts
- 2-3 frontend developers
- 2-3 backend developers
- 1-2 designers
- 1-2 quality assurance analysts
On the other hand, hiring individual freelancers is cost-effective, as their rates tend to be lower than those of the company that provides later app development solutions. However, working with freelancers is riskier, as they may not have the same level of expertise and resources as a company, and there may be less accountability and communication.
It’s important to carefully evaluate the pros and cons of each approach and choose the one that best fits your business needs, budget, and development timeline. Ultimately, working with a reliable and experienced team, whether it’s a company or freelancers, helps to ensure that the project is completed on time, within budget, and to a high standard of quality.
You have an idea about the factors impacting the complete cost of developing this BNPL mobile app. Let’s check the tips to reduce the cost of development for providing a BNPL online payment solution.
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How to Reduce BNPL App Development Cost (5 Tips)
Here are the tips to reduce the cost of BNPL app development. These tips ensure that your app meets your business needs and provides value to your customers.
Tip 1. Choose a reliable and experienced BNPL app development team: Look for an experienced BNPL service provider team with a good track record of delivering quality work. This helps to reduce the risk of costly mistakes and ensure that the project is completed on time and to a high standard.
Tip 2. Clearly define your project requirements: Providing a clear and detailed project brief helps to reduce the risk of scope creep and ensures that the development team understands exactly what is required. This helps to minimize the risk of costly revisions and delays.
Tip 3. Consider a remote BNPL service-providing team: If you are willing to work with a remote team, you often find lower-cost options. This includes working with developers in different parts of the world, where the cost of living and labor costs are lower.
Tip 4. Prototype and test early: By prototyping and testing early, you identify issues and make changes before they become costly to fix. This helps to reduce the overall cost of development by catching issues early in the process.
Tip 5. Plan for scalability: Plan for scalability from the beginning, so that you easily add new features and users in the future. This helps to reduce the need for costly updates and redesigns down the road.
Best Apps like AfterPay
If you are searching about what other apps are like AfterPay, here is a complete list of AfterPay alternatives.
| App Name | Country of Origin | Platform Availability |
|---|---|---|
| Klarna | Sweden | Global |
| Affirm | United States | Global |
| Zip Pay | Australia | Australia |
| Sezzle | United States | United States, Canada, Australia |
| Paybright | Canada | Canada |
| Splitit | United Kingdom | Global |
| Laybuy | New Zealand | New Zealand, United Kingdom, Australia |
| Clearpay | United Kingdom | United Kingdom |
Frequently Asked Questions About the Cost to Develop a BNPL App Like Affirm and AfterPay
How to ensure that the BNPL app is secure
To ensure the security of your BNPL app, it’s important to prioritize security features such as fraud prevention, encryption, and secure payment processing. Working with a reputable development team helps ensure that your app meets industry security standards.
How much time does it take to develop a BNPL like app?
Buy Now Pay Later like apps take around 6-9 months to develop. The timeline for developing a BNPL app varies widely depending on the complexity of the app and the specific features included. Typically, it takes several months to develop a high-quality BNPL app.
How to create a BNPL app in 7 Steps
Here are the 7 steps to create a BNPL app:
Step 1: For the buy now pay later app development process, conduct market research to identify the target audience and competitors, and market trends.
Step 2: Based on market research, define the features and functionality that your BNPL app will offer, including payment processing, bank account management, and reporting and analytics.
Step 3: You’ll need to choose a development platform, such as iOS or Android, based on your target audience and other factors such as budget and timeline.
Step 4: To bring your BNPL app to life, you’ll need to hire a development team that has experience in developing financial services apps and delivering high-quality work within your budget and timeline.
Step 5: The development team will work on designing and developing the app, incorporating the features and functionality that you’ve defined.
Step 6: Before launching the app, it’s important to thoroughly test and quality assure the app to ensure that it works properly and meets your users’ needs.
Step 7: Once the app is ready, you launch it on the app store and begin marketing it to your target audience through various channels such as social media and digital advertising.
Creating a BNPL application is a complex and time-consuming process, but with the right team and BNPL service provider, create a successful app that meets the needs of your users and grows your business.
How Space-O Technologies Helps You to Build Buy Now Pay Later App
Being a BNPL service provider, we specialize in creating customized and secure BNPL app development solutions that deliver exceptional user experiences. Our experienced app developers and project manager understand the complexities and challenges of building a BNPL application like AfterPay, and we’re here to help you turn your vision into a reality.
We offer end-to-end services that include ideation, design, development, and deployment. So, if you have an idea about later app development, we identify the right features, integrate the right payment gateway, and ensure your app meets all necessary regulations.
Contact us today to learn more about how we can help you build a BNPL application like AfterPay that’s secure, easy to use, and successful.
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